Regulatory Alerts2020-01-01
Decision No. 139 of 2020 of the General Authority for Financial Supervision Amending Decision No. 111 of 2015 on Real Estate Financing Rules and Standards
The General Authority for Financial Supervision issued Decision No. 139 of 2020 to amend Decision No. 111 of 2015 governing real estate financing rules and standards. The amendment establishes a maximum financing limit of 15% of the financier's net equity for residential loans granted to a single investor, encompassing their spouse and minor children. It additionally caps non-residential financing at 30% of the financier's net equity, applying uniformly to both natural persons and legal entities alongside their related parties.
Egyptian Gazette - Issue 17 on January 21, 2021
General Authority for Financial Supervision Decision No. 139 of 2020 Dated 31/08/2020 Amending Decision No. 111 of 2015 Regarding Rules and Standards for Conducting Real Estate Financing Activities
Board of Directors of the General Authority for Financial Supervision Having reviewed the Real Estate Financing Law issued by Law No. 148 of 2001; and Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; and Decision No. 111 of 2015 of the Authority's Board of Directors regarding rules and standards for conducting real estate financing activities; and after approval by the Authority's Board of Directors in its meeting held on 31/08/2020;
DECIDES:
( Article One ) The following two texts shall replace the texts of clauses (First - 4 and Second - 2) of Article Eight of Decision No. 111 of 2015 of the Authority's Board of Directors regarding rules and standards for conducting real estate financing activities:
( Article Eight: First - Clause 4 ): 4 - The value of financing granted for residential purposes to a single investor shall not exceed (15%) of the financier's net equity, applicable to a natural person, their spouse, and minor children.
( Article Eight: Second - Clause 2 ): 2 - The value of financing granted for non-residential purposes to a single investor shall not exceed (30%) of the financier's net equity, whether for a natural person, their spouse, and minor children, or for a single legal entity and its related parties.
( Article Two ) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors Dr. Mohamed Omran